china law
Lehmanlaw

Is ratio analysis in China any different from in other countries?

As the Chinese enterprises financial and accounting system is brought into line with International Accounting Standards, ratio analysis is becoming standardized.

Currently, the State stipulates three categories of financial analysis indicators (the names of which differ slightly from internationally-recognised categories, although the ratios remain the same):

1. Solvency Indicators

2. Operating Capability Indicators

3. Profitability Indicators